European securities depository Euroclear is to introduce a single integrated settlement platform for the straight-through processing of trades from its single order book.
Delivery of the new platform is expected at the end of 2007, following the launch of Euroclear's Single Settlement Engine in 2006.
The new initiative will provide a single access point of settlement for trades conducted on any of the Amsterdam, Brussels and Paris segments of the Euronext exchange.
Euroclear says the new platform will enable both local and remote clients to settle these cross border trades in the sames way as domestic transactions and with the same cost. Users will be able to settle the cash component of trades through any one of the three central banks within the Euronext zone.
The Belgian central securities depository (CIK), Euroclear France and Euroclear Nederland will use a common settlement and custody platform, based on harmonised market rules and practices within the three markets. The platform will combine elements of Euroclear's Single Settlement Engine, Single Application Platform and Common Communications Interface.
Pierre Francotte, CEO, Euroclear Bank, says: "The Euronext settlement solution is an important intermediate step towards the creation of a single transaction-processing platform for the Euroclear group. Local and remote Euronext members will derive tangible value in terms of reduced cost and risk, greater pools of liquidity and higher STP rates."